Australia's Brambles estimates one-time benefit from U.S. tax reform

Reuters Staff

2 Min Read

(Reuters) - Australian pallets and container company Brambles Ltd (BXB.AX) said on Tuesday it estimates a $125 million to $155 million one-time benefit due to the passing of the Tax Cuts and Jobs Act in the United States.

The one-time non-cash benefit to its income tax expense as at Dec. 31, 2017, would be due to a lower deferred tax liability in the United States, the company said in a statement.

Brambles also said that, apart from the tax rate reduction, there were a “number of measures” that could affect the company negatively. It did not elaborate.

Last month, the U.S. House of Representatives gave final approval to the biggest overhaul of the U.S. tax code in 30 years, which included cutting the corporate tax rate to 21 percent from 35 percent.

Companies from Goldman Sachs (GS.N) to Australia’s Worley Parsons (WOR.AX) and Navitas (NVT.AX) have detailed the impact of the bill on their financial results.

Shares of Brambles on the Australian Stock Exchange were trading 0.9 percent higher at A$10.16 at 2319 GMT, while the benchmark slipped 0.1 percent.

Reporting by Aaron Saldanha in Bengaluru; Editing by Paul Tait and Stephen Coates